Why Papa John's Shares Are Gaining Today

Papa John’s International, Inc. PZZA shares are rising today.

The company reported fourth-quarter adjusted earnings per share of 91 cents, beating the street view of 72 cents.

Papa John’s reported net sales of $571.32 million, missing the analyst consensus of $577.86 million. Revenues rose 9% year over year.

North America comparable sales were up 2%, while International comparable sales were down 6%.

In the quarter under review, the firm witnessed 89 net unit openings driven by 36 North America and 53 International net unit openings.

“We are also making progress on our International transformation initiatives, which include optimizing our UK business model,” said Rob Lynch, Papa John’s President and CEO. 

Global system-wide restaurant sales were $1.34 billion, an 11% increase from the prior year’s fourth quarter, excluding the impact of foreign currency.

“We continue to see sequential improvement in our UK sales, with UK franchisees reporting their second consecutive quarter of positive comparable sales in the fourth quarter,” Lynch added.

Operating income of $42.6 million for the fourth quarter of 2023 increased 17.5%, driven by positive North America comparable sales.

As of December 31, 2023, there were 5,906 Papa John’s restaurants operating in 50 countries and territories.

Price Action: PZZA shares are trading higher by 6.74% to $74.88 on the last check Thursday. 

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